France, Japan, IMF, U.S. in new crisis remedies
Japan and France extended more help to banks, the IMF prepared to intervene in trouble spots around the world and the Fed devised a new plan to inject liquidity into money markets on Tuesday to curb the worldwide financial crisis.
Interbank lending costs came down again, offering tentative signs of renewed confidence in the financial system, after weeks of bailouts and rescue plans appear to have cooled the worst crisis since the 1930s Great Depression.
Governments around the world have promised about $3.3 trillion to guarantee bank deposits and bank-to-bank lending, and in many cases have taken stakes in struggling banks.
“The likelihood of a global catastrophe has in fact declined over the past couple of weeks,” said Glenn Stevens, Australia’s central bank governor faxless payday advances.
The U.S. dollar rallied to a year-and-a-half high against a basket of currencies on Tuesday as investors and companies continued to deleverage.
The stronger dollar, in turn, sent gold down nearly 4 percent and oil prices fell.
Japanese stocks closed 3.3 percent higher and European shares reversed earlier gains to trade lower in the afternoon.
But the Dow moved lower amid concern over U.S. earnings reports for the third quarter. U.S. chemical giant DuPont cut its 2008 earnings and major asset manager BlackRock Inc reported profits that came in below market expectations.